On politics in the Golden State

California tax revenue $3 billion less than target, report says

May 1, 2012 | 5:25
pm

The legislative analyst’s office has a new number that is adding to California’s financial headache: $3 billion. That’s the total amount that tax revenue has lagged behind goals set by Gov. Jerry Brown’s administration in the current fiscal year.

Much of that gap comes from a disappointing April, the most important month for income taxes. Income taxes were $2.07 billion short of the $9.43-billion goal, and corporate taxes fell $143 million short of an expected $1.53 billion, according to the report.

It's unclear exactly how much this year's budget deficit will grow because of the tax shortfall. Brown's administration estimated the gap at $9.2 billion in January, but has since said it will grow.

"The number is going to be larger," said H.D. Palmer, a spokesman for Brown's Department of Finance. "We’re going to have a plan to close that gap when we release the May revision," the updated budget proposal that is expected by May 14.